Order Flow and Liquidity

Trading is all about order flow and liquidity, no matter which market you trade, whether it is currencies, gold, etc. There is absolutely nothing wrong with playing the greater fool game, so long as you can manage your risk, leverage, know how to place good trades, and know when the trend is going to end.

It is all about if there is liquidity available when you decide to exit your trade and what price did you get. If you are in a profit on a position, and your system tells you to take profits, and there is liquidity, great! That is all that matters.

There is a lot of money to be made in playing trends when they start and before they get into a bubble. There is also a lot of money to be made when the bubble accelerates and the greater fool order flow starts to take hold. There is nothing wrong with playing either of them. There are different order flow generators, and different mindsets, but you can play both. It’s all about the order flow and liquidity…

There have been a ton of people who have made so much money on the gold/silver trends and were able to protect their downside with minimal cost and/or know when the market is about to reverse so they can go flat or go short. The amount of money some people have made has been mind boggling. For some people they haven’t seen such profits in years.